Loan to pay off overdraft

Workingthroughitslowly

Just what the title says really.

I have a 5k OD on a personal account and husband and I have the same again on our joint account.

Natwest have seemingly not had an issue with this but last month our accounts were transferred to their Recovery unit and we are now under a bit of pressure to take out a loan with them to pay off the debts in full.

I don't really have an issue with this: the interest would be lower and it would force us to pay off the debt but I am just wondering whether I am missing something since I asked natwest to loan us the money to pay off the OD's a couple of years back (because the rates were so much lower) and they refused. Now they are suddenly very keen.

If it makes a difference we do have a lot of debt - I have just had my LBM and am in the process of extracting my head from the sand - but it has always been "manageable" although we haven't been actively reducing it

Emmzi

They'll be keen as it is in recovery and they will charge you a huge interest rate.

how much do you earn

what other debt do you have

what assets do you own

do you have CCJs or late payments on your credit file

same questions for hubby

xazvia

i sympathise with you and hope you can find a satisfactory outcome. i would never take out loans or borrow anything from anyone but i understand that many do. let's hope you can pull through this ordeal okay.

Workingthroughitslowly

Emmzi thanks for reply.

Interest on loan is 10.9%, interest on OD's much more.

Two late payments in relation to husband where bank cancelled DD as they were concened he would have insufficient funds to make payment (although there was money in our joint account which we could have transferred) they then failed to tell us they had done this until after we'd missed the payment. The following month when husband tried to make a manual online transfer the bank flagged it as "potentially fraudulent" and didn't honor the transfer, it took 5 days to resolve the issue by which time the payment was late :mad: :mad: :mad:

No other late payment and no CCJ's for either of us we each have around 16k of unsecured debt each.

Husband earns approx £120k but we got in debt on the CC's and OD's two years ago when he lost his job and we were running two households. We've been lazy about paying the debt back because it has always been manageable and it has taken a while to get things back on an even keel.

I haven't worked for a few years (husband has been making my repayments) but I am starting a new job beginning of next month and will be earning £87.

I have asked bank to hold off until I start work as things will change dramatically but they are not keen.

I feel embarrased writing this as obviously we have good salaries but we're just rubbish at money management and good at head in sand

reall

Dear workingthroughitslowly,

It is hard to face reality but it is so much better both of you sitting down with a trained counsellor eg.citizens advice bureau,over the phone with creditcounselling service cccs and sort out the issues with your debts.It will help your relationship with your husband,family,release the anxiety,depression,stress.possible likelihood of sickness in the body for the future.You said it yourself because you acknowledge that you are good at keeping your head in the sand but you do need to breathe too.
Do not allow fears to paralyse you from taking control of the money etc issues.It is far better to have a plan that can be worked through with a non profit organisation such as cccs/debtline/paypal etc.


from reall

reall

oops i meant payplan not paypal

Emmzi

So you have £32k debt total?

Depending on your mortgage, on £120k, if you knuckled down, you could shift that in a year. Could you give up a holiday, downgrade the car, give up sky and the mobile contracts, and eat in for 12 months, to be free?

Workingthroughitslowly

Emmzi, yes 32k between us :eek:

The plan is that once I am working about 80% of my salary will go on debt repayments and we will be debt free (although not mortgage free) in 15mths. When I think about the freedom that will give us it is unbelievable. Although I don't actually feel excited about that prospect just stupid to be here in the first place.

I think I'll put a post in DFW

Emmzi

DFW would be an excellent start, and most of us have been there!!

blacksta

Debt free board waiting for you.

pauletruth

your on 120k and been living on your overdraft oh dear that really is very impressive, what are you doing with the 2307 you get every week. this is serious if your not coping on that level of income then you need to do some serious thinking what would happen if your income disapeared.